Do I Need a Long-Term Care Plan?
David Shapiro joins Better Money Boston this week to delve into the crucial topic of long-term care and its financial implications. Long-term care, often associated with hefty price tags, is a consideration that everyone should have on their radar.
Who Should Consider Long-Term Care Plans?
The statistics are quite revealing: over 70% of individuals in the United States over the age of 65 will require some form of long-term care during their lifetime. Additionally, 15% of people over 65 may spend up to two years in a nursing home.
Given the high costs, particularly in areas like the Northeast, having a solid plan in place is essential for most of us.
Exploring Long-Term Care Options
There are several options available for long-term care planning:
- Traditional Long-Term Care Policies: These are the “use it or lose it” types. If you end up needing care in a nursing home, the policy will pay out. However, if you never use it, the insurance company keeps the money.
- Insurance Riders: There are various types of insurance, including life insurance with long-term care riders. This means that if you pass away, your family will receive a death benefit. If you require nursing home care, you can access some of the policy money to cover those costs.
- Hybrid Annuities: A newer option, hybrid annuities combine traditional annuities with long-term care benefits. These may not cover costs as comprehensively as other options but provide some level of financial support if nursing home care is needed.
- Self-Insurance: For some clients, self-insuring is a viable option. This involves using personal savings or investments to cover long-term care costs. While this path has its advantages, it’s crucial to have a structured plan to manage these high expenses effectively.
Why Having a Plan is Key
The consensus is clear: the most important step is to have a plan. Given that 70% of people turning 65 will need some form of long-term care, it’s prudent to start planning now.
This involves considering various factors such as potential medical needs, financial resources, and available support systems. By preparing in advance, you can ensure that you or your loved ones receive the necessary care without unnecessary stress or financial burden. Start early to explore your options and make informed decisions for a secure future.
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
Related Resources
-
Identity Theft: What to Do If Your Identity Is Stolen
In the digital age, the threat of identity theft is at an all-time high. Sophisticated cybercrime tactics and schemes have left us more vulnerable to online scams than ever before. So, what can… -
Estate Planning Must Haves
Estate planning can be a time-consuming and overwhelming process, but it’s a crucial step in securing your family’s financial future and cementing your legacy. By working closely with an estate pl… -
The Road to Retirement – Don’t Go it Alone
Achieving the retirement you’ve always dreamed of often requires careful planning. While the do-it-yourself approach may be difficult to shake, consider the benefits of seeking professional advice… -
What Updates Can We Expect for Social Security in 2025?
A new year means new rules for retirement plans. Let’s start with one of the largest sources of income for millions of retirees: Social Security. What changes can we expect in 2025? Heath Gross… -
Getting It All Together for Retirement
After a long, fulfilling career, the time has come to embrace the next chapter. You may have envisioned the age at which you’d retire since you began working, but it’s important to distinguish bet… -
Key Questions for Planning Your Retirement Income
Replacing your income in retirement is a significant undertaking that raises many important questions and requires careful planning. First and foremost, it’s essential to have a retirement income … -
Health Care Expenses in Retirement
Of all the expenses to expect in retirement, health care often makes up a significant portion of your costs. Monthly premiums, out-of-pocket expenses, and services not covered by Medicare can quic… -
Income Planning 101
You’ve spent the last few decades saving for retirement but are you truly prepared? To help address any concerns or uncertainties you may have, you need an income plan – one that considers every f… -
Frequently Asked Social Security Questions
Almost every American is impacted by Social Security in some way, so it’s no wonder that it’s one of the most frequently asked topics in retirement planning. When and how you start taking benefits… -
Maximizing Your Social Security Income
Social Security can serve as a safety net for many retirees, sometimes acting as a primary source of income. However, the program is highly complex with over 500 ways to claim benefits. Even one o…
